This document discusses the impact of remittances on household welfare in Pakistan. It finds that a reduction in remittances would decrease GDP, investment, and household consumption, thereby increasing poverty. Households that receive remittances have a 12.7% lower probability of becoming poor. Poverty and inequality also decline for households receiving remittances, with poverty declining by 7.8% and inequality by 4.8%. While remittances play an important role, the key challenge is encouraging more remittances through formal channels to spur productive investment and development.
Related topics: